Hedonic vs. Utilitarian Perspective of Retail Store Loyalty: Insights from a National Study of Households

Abstract

Retailers are currently facing an ultra-competitive environment as consumers are foregoing 'brick-and-mortar' stores in favor of shopping online, taking advantage of discounts offered by Internet retailers. Retailers, in turn, are continually exploring how to increase patronage and spending in their stores. Developing loyalty among consumers is critical in today's competitive environment. Building on the hedonic-utilitarian theory, the present study examines the determinants of household retail store loyalty using national consumer panel data over a four-year period. Specifically, this study delineates two categories of retail stores: hedonic retail stores and utilitarian retail stores. We conceive of hedonic consumption as shopping for pleasure and enjoyment, whereas utilitarian consumption occurs when consumers wish to fulfill a specific need or task. Our findings reveal that household store loyalty does in fact exhibit meaningful differences between hedonic retail stores vs. utilitarian retail stores. We offer potential strategies for both hedonic and utilitarian retail stores.